Logistics major Delhivery has approached the Competition Commission of India to seek approval to acquire a 99.4% stake in Ecom Express for Rs 1,407 crore. In a joint notice, the companies stated that the proposed transaction would not affect market competition or alter existing dynamics in the logistics sector.

“At the outset, it is submitted that the relevant products and geographic markets can be left open, given that the proposed transaction will not lead to any change in the competitive dynamics, let alone cause any appreciable adverse effect on competition, in any market in India,” read the notice by the businesses, Inc42 reported.

While acknowledging overlaps in logistics services, express parcel delivery, and warehousing, the companies said they also share vertical relationships in intralogistics automation and downstream logistics services. The notice argued that the acquisition falls under Section 5(a) of the Competition Act, 2002, which requires regulatory clearance for combinations above specific thresholds.

“The proposed transaction reflects the Indian economy’s continuous requirement for improvements in cost efficiency, speed and reach of logistics,” said the applicants. “The proposed transaction will enable the parties to service their customers better, through continued investments in infrastructure, technology, network and people.”

Delhivery’s offer represents an 80% markdown from Ecom Express’ last valuation of Rs 7,300 crore in June, 2024. The deal follows a series of setbacks at Ecom Express, including the death of cofounder TA Krishnan, leadership churn, and the loss of key clients such as Meesho, Reliance, and Amazon.

Author Credits- Isabelle Crossley, FASHION NETWORK